Icon Energy Limited Annual Report 2017

REVIEW OF OPERATIONS 6 ICON ENERGY ANNUAL REPORT 2017 REVIEW OF OPERATIONS ATP 594 COOPER-EROMANGA BASIN, QUEENSLAND ATP 594 is located on the eastern flank of the Cooper Basin approximately 140 kilometres west of Quilpie and consists of three separate blocks covering a total area of 1,230 square kilometres. ATP 594 was renewed by the Department of Natural Resources and Mines ( DNRM ) on 17 April 2015 for a period of four years. There is an opportunity to apply for a renewal at the end of the four-year time period and a further opportunity to renew after eight years, which would take the maximum term allowable for the ATP to 12 years. ATP 594 is well positioned on the eastern flank of the Cooper Basin and is considered to be prospective for oil and gas. Numerous wells within and adjacent to ATP 594 have encountered hydrocarbon shows and there are several oil fields to the south and southeast of the tenement, including the Kenmore and Bodalla South oil fields. Icon began acquisition of the Harrier 3D seismic survey, located in the northern block of ATP 594, on 15 November 2016. The work was conducted by the Terrex Group, who are based in Brisbane. Field activity began with a Cultural Heritage clearance survey, which was completed by the Boonthamurra Traditional Owners on 4 December 2016. Line clearing by the advance party began on 8 December 2016 and by 11 January 2017 a total of 1,005 kilometres was completed and ready for acquisition. Seismic acquisition began with the line crew laying out equipment on 14 January 2017. However, operations were suspended on 16 January 2017 when wet weather resulted in the crew being demobilised as the area became unpassable due to serious flooding. Operations resumed on 8 February 2017 and seismic acquisition was finally carried out from 14 to 23 February 2017. A total of 293 square kilometres of data was acquired during the Harrier 3D seismic survey. Following the completion of the seismic survey and rehabilitation of some of the landholder’s access and fence line tracks, the remaining Terrex crew was finally demobilised on 11 March 2017. Processing of the Harrier 3D seismic data was carried out by Velseis in Brisbane from mid-March 2017 and was finally completed on 9 June 2017. At the time of writing, the 3D seismic data was still being interpreted. Structural interpretation has been completed on several key horizons, and a detailed interpretation of the Birkhead Formation prospectivity is currently underway. This is anticipated to be completed by the end of September. Icon is the Operator of ATP 594 and has a 100% working interest in the tenement. Map showing the location of ATP 594, Cooper-Eromanga Basin, Queensland, and the position of the Harrier 3D Seismic Survey in the northern block